IRVINE, CA -- (Marketwired) -- 08/07/14 --
Q2 2014 Highlights (compared to Q2 2013):
- Product revenue rose 3% to $133.5 million
- Total revenue, including royalties, rose 3% to $140.9 million
- Masimo rainbow™ revenue was level at $11.6 million
- SET™ and rainbow™ SET™ unit shipments were 43,400
- Earnings per share was $0.24, including a $0.03 charge for a charitable contribution that was announced in May 2014
Masimo (NASDAQ: MASI) today announced its financial results for the second quarter ended June 28, 2014.
Second quarter 2014 product revenues rose 3% to $133.5 million, compared to $129.6 million for the second quarter of fiscal year 2013, and total revenue, including royalties, rose 3% to $140.9 million, up from $137.4 million for the second quarter of fiscal year 2013.
The company's worldwide direct product revenue in the second quarter of 2014 rose by 5% compared to the same period in 2013 and represented 85% of product revenue. OEM sales, which accounted for 15% of product revenue, declined by 6% compared to the same period in 2013. Revenue from sales of Masimo rainbow products was level at $11.6 million in the second quarter of 2014, compared to $11.5 million in the year-ago period.
Net income for the second quarter of 2014 was $13.8 million, or $0.24 per diluted share, compared to net income of $17.0 million, or $0.30 per diluted share, in the second quarter of 2013. Net income for the second quarter of 2014 included an expense of $2.5 million, or $0.03 per share, for the previously announced contribution to the Masimo Foundation.
During the second quarter of 2014, the company shipped approximately 43,400 SET™ pulse oximetry and rainbow™ Pulse CO-Oximetry™ units, excluding handheld units, an increase of 2% compared to the same prior-year period. Masimo estimates its worldwide installed base as of June 28, 2014 to be 1,260,000 units, up 10% from 1,148,000 units as of June 29, 2013.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, "Although our results for the second quarter were below our original Q2 expectations, it will not have a substantial impact on our full year financial guidance given that some rainbow™ orders, including a large international rainbow™ order, was shifted from Q2 into Q3. Also, I am happy to report that in June, Masimo received FDA clearance for the full featured Root™ patient monitor, which includes IRIS™ connectivity hub and MOC-9™ for additional measurements, and our Nomoline™ capnography and anesthetic agent ISA side-stream monitors, again demonstrating our ability to innovate new technologies that can help advance patient care."
As of June 28, 2014, Masimo's cash and cash equivalents were $97.1 million, compared to $95.5 million as of December 28, 2013. During first half of 2014, the company borrowed $75.0 million on its line of credit. This additional cash, along with net cash generated from operations, was used to repurchase approximately 2.0 million shares of stock for $49.2 million and to acquire the company's new worldwide headquarters building for approximately $56.0 million.
2014 Financial Guidance
Masimo is providing updated 2014 financial guidance. Masimo now expects fiscal 2014 total revenue to be approximately $588 million to $593 million, including product revenue of approximately $560 million to $565 million and royalty revenue of approximately $28 million. In addition, Masimo now expects fiscal 2014 GAAP earnings per diluted share to range between $1.24 and $1.30. Each of the components of Masimo's guidance set forth above is an estimate only and actual performance could differ.